Blagojevich restores some spending cuts -- maybe

Friday

Nov 21, 2008 at 12:01 AMNov 21, 2008 at 9:00 PM

Gov. Rod Blagojevich further muddied the state budget picture Thursday, acting to spare money to prevent state park closings and worker layoffs but leaving the fate of those cuts unclear and historic site closings still on schedule.

Ryan Keith

Gov. Rod Blagojevich further muddied the state budget picture Thursday, acting to spare money to prevent state park closings and worker layoffs but leaving the fate of those cuts unclear and historic site closings still on schedule.
Minutes after lawmakers went home without taking budget action in their fall veto session, Blagojevich acted on Senate Bill 1103, designed to restore more than $230 million in spending cuts he made this summer.
The governor approved about $176 million of that total, aimed at restoring funding for substance abuse centers, keeping 11 parks open and preventing more than 320 layoffs of human-services and child-welfare workers scheduled for Nov. 30.
But Blagojevich spokeswoman Katie Ridgway said human-services workers still will be laid off, and there’s no guarantee yet parks won’t close. Not all of the 179 workers at the Department of Children and Family Services scheduled to be laid off might be spared, either, she said.
“We were able to save some core services today, but in the larger picture, we still have a $2 billion shortfall and need to manage that budget,” Ridgway said. “Difficult decisions are being made this year, but we have to do so while maintaining core services.”
Blagojevich also used his veto pen on $55 million, cutting funding for 13 state historic sites and personnel in the offices of the attorney general, treasurer and secretary of state. Lawmakers will have another shot to restore those cuts but aren’t scheduled to return to the state Capitol until January.
Blagojevich said he rejected that spending with “great reluctance,” but “sound financial management” and “prudent fiscal policy” required him to turn it down without enough money to pay for it.
“I share many of the spending priorities outlined in this legislation,” Blagojevich wrote in his veto message. “But, due to clear hypocrisy of the revenue passed in support of this legislation, sufficient revenues are not available to meet the obligations outlined.”
A spokesman for the major union for state employees said the union is gratified with Blagojevich’s action to restore the cuts but disappointed historic sites were not also spared.
“We’ll continue to fight for them,” said Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees Council 31. AFSCME is waiting for official notice that the planned layoffs will be rescinded, Lindall added.
Blagojevich made the cuts this summer, but lawmakers returned to the Capitol in September to restore them. They approved taking money out of dedicated state funds for special purposes to cover the extra spending.
The governor then approved the so-called “fund sweeps” bill but said he had doubts about being able to take some of the money out of the funds involved.
He cited those concerns again Thursday, along with new estimates from his state revenue department that money coming into state coffers is falling far short of budgeted amounts because of the slumping economy.
“While the nation faces a tremendous crisis, we must use all available resources to protect the stability of the state and the needs of its people,” Blagojevich wrote to lawmakers.
The governor earlier this week proposed a plan to deal with the growing budget hole — now estimated to be at least $2 billion — by asking lawmakers for more authority to cut back spending throughout government and seeking billions of dollars in extra federal cash.
House leaders initially intended to call the governor’s plan for a vote Thursday, but that changed when the governor’s office asked for more time to work on the idea.
“His (Blagojevich’s) people decided that maybe it wasn’t quite ready for debate and that we should do a little more negotiations. We’re OK with that,” said Rep. Gary Hannig, D-Litchfield.
Rep. Jay Hoffman, a Collinsville Democrat and Blagojevich’s top House ally, said the state can’t wait long to address the growing problem but also needs lawmakers and the governor to work together to deal with it.
He said legislators want to restrict how much the governor can take out of certain spending areas and want more say on how cuts will be handled.
“Making sure that the bill is properly drafted in this emergency time is key,” Hoffman said.